Nigeria Secures $1bn Steel Investment Deal In India

Nigeria has taken a major step towards revitalising its steel industry, securing a $1 billion investment commitment following the signing of a Memorandum of Understanding (MoU) between the Minister of Steel Development, Prince Shuaibu Abubakar Audu, and India-based Rashmi Metaliks Group in Kolkata on Tuesday.

The agreement, expected to be implemented over three years, underscores the Federal Government’s push to reposition the steel sector and attract foreign direct investment under President Bola Ahmed Tinubu’s Renewed Hope Agenda.

This was revealed in a press statement signed by the ministry’s Head of Press and Public Relations, Salamatu F. Jibaniya, on Tuesday.

According to the statement, Audu, who spoke after touring the company’s steel plant, described the scale of operations and level of technology at the facility as a model for modern industrial production.

He said the firm’s integrated processes—from Direct Reduced Iron (DRI) to finished ductile iron pipes—demonstrate the efficiency Nigeria aims to replicate.

According to the minister, the MoU represents a major milestone in ongoing efforts to revive the steel industry, create jobs and conserve foreign exchange through import substitution.

“Nigeria’s proactive investment drive is already attracting significant global capital,” he said, adding that the partnership reflects strengthening economic ties between Nigeria and India in steel, mining and manufacturing.

Audu disclosed that Nigeria has already attracted over $2.2 billion in foreign direct investment into the steel sector, noting that the country is transitioning from a raw minerals exporter to a value-adding industrial economy.

He said Nigeria possesses more than three billion tonnes of iron ore reserves, with some deposits grading as high as 67 per cent iron content, while domestic steel demand is estimated at about $10 billion annually.

The government, he added, is targeting crude steel production of 10 million tonnes per annum by 2030, with a vision to position Nigeria as a leading steel hub in Africa.

Highlighting ongoing projects, the minister cited a $400 million steel plant in Ewekoro, Ogun State, and a $300 million integrated iron and steel project by the African Industries Group in Kaduna State.

He also pointed to efforts to strengthen energy supply to the sector, including a $500 million mini-LNG project in Ajaokuta, Kogi State, being developed in collaboration with the Nigerian National Petroleum Company Limited.

Audu used the visit to invite more Indian investors to explore opportunities in Nigeria’s steel value chain, including the establishment of integrated steel plants and the deployment of modern technologies such as electric arc furnaces.

“We are open to credible investors willing to partner with us for mutual growth,” he said.

On his part, the vice chairman of Rashmi Metaliks Group, Sunil Kumar Patwari, expressed appreciation to the Nigerian delegation, stating that the visit underscores the importance of the partnership. He assured that the company was committed to delivering on the projects outlined in the agreement, with the necessary government support.

The minister’s delegation included officials from the Ministry of Steel Development and the Nigerian High Commission in New Delhi, led by Acting High Commissioner Ubong Akpan Johnny.